Structured Bonds

Description
Structured bonds can be extendible or stepped up. Extendible bonds offer predetermined interest payments like other bonds. Each year, if the bonds are not called, the investor is paid a stepped-up coupon according to the rate schedule. This stepped-up rate is the compensation for the risk of extending towards final maturity

Objective
To provide regular income over short and intermediate periods of time.

Suitability
Anyone who relies solely on their fixed-income investments for income. This type of investment is not suited for anyone needing their money in the short-term future.

Features

• Safety: These investments are backed by the full faith and credit of the issuer.
• Liquidity: These debentures may be sold on any business day at their current market value, which may be more, less or equal to the initial amount invested.
• Tax Status: Income from these bonds is fully taxable unless held in a qualified retirement plan.
• Income: Interest is paid on a monthly, semi-annual or yearly basis.

For more information, please contact your Edward Jones financial advisor*.